Taiwan's economic activities have improved on the back of this year's global recovery with several major domestic economic indicators showing encouraging signs as well, Premier Jiang Yi-huah said today after hearing the National Development Council's report on the nation's economic climate and outlook.
In June, Taiwan's overall economic monitoring indicator flashed a green light for the fourth time in a row. Export orders have been surging, domestic production is making a comeback, and the unemployment rate fell to a six-year low. As for the stock market, the benchmark TAIEX index advanced to 9,500 points—the best performance in six-and-a-half years. Significant increases in trading volume have also brought in more government revenues via the securities transaction tax. All of these developments have pushed consumer confidence index to a historic high, signaling that Taiwan's economy is making steady strides toward recovery.
"Improvements in the domestic economic climate can be attributed to not only the global upturn but also the government's short-, mid- and long-term economic policies," said Premier Jiang.
In addition to expressing gratitude to the ministries for their efforts, the premier urged them to seize the recovery momentum and propel the economy further by taking more proactive and innovative approaches. The ministries were also requested to work out measures for the "seven national policies" (population, national land, education, industry, social welfare, culture and national health) announced by Premier Jiang in early July, which are intended to enhance the nation's overall competitiveness while allowing all citizens to share in the fruit of economic growth.
These cultural and social infrastructures are just as important as the industry or the economy, Jiang added, saying that Taiwan's competitiveness cannot rely solely on economic growth. The premier reminded the ministers to use their annual budgets and plans wisely to make the administrative system even better next year.
Openness and innovation are the keys to success for Taiwan's economy, which is why the free economic pilot zones (FEPZs) are such an important priority for the government right now, the premier said. Aside from upgrading traditional manufacturing and service industries, the government is easing land management, personnel movement and tariff restrictions in the zones to enhance business efficiency and attract foreign investments. The FEPZs will be an important engine to take Taiwan's economy to the next level.
The second phase of the FEPZ plan will begin as soon as a special law governing the zones receives legislative approval. Premier Jiang asked the ministries to continue communicating with legislative caucuses of all parties so that the law can be passed and the plan implemented as early as possible.